The present invention generally relates to a TMR reader and a method for its manufacture. The TMR reader discussed herein adds a shield layer to the sensor structure. The shield layer is deposited over the capping layer so that the shield layer and the capping layer collectively protect the free magnetic layer within the sensor structure from damage during further processing. Additionally, the hard bias layer is shaped such that the entire hard bias layer underlies the hard bias capping layer so that a top lead layer is not present. By eliminating the top lead layer and including a shield layer within the sensor structure, the read gap is reduced while still protecting the free magnetic layer during later processing.